Families are scrimping, saving and making do as the economic crisis hits households, a new index shows.

The Mumdex, which measures how mums are coping with squeezed budgets, makes grim reading as inflation and the high rate of unemployment mean Brits have to work harder to juggle the family finances.

Three quarters of the mums surveyed have seen their family budget hammered by the rising cost of living and half have seen a drop or freeze in the housekeeping money.

Nearly a quarter of mums revealed they borrow cash at the end of each month to make ends meet, with a similar number admitting the pressure of coping with their financial situation was putting a strain on their relationships.

And half of the 4,000 polled for the Asda Mumdex report said money worries were adding huge stress to their lives.

With families focused on keeping a roof over their heads, plus the higher heating, lighting, petrol and food bills, there is little spare cash for little luxuries. A third have shelved family holidays because there was nothing in the kitty.

But mums said they tried to protect their children from feeling the pinch, sacrificing their own treats like a new lipstick or new clothes to buy extras for their children.

They typically spend twice as much of their weekly budget on the kids as they do on themselves and their partners.

Younger mums aged 16-29 are the hardest hit. Two fifths are unable to afford the basics and 43% are forced to borrow to pay for food and everyday bills.

And as families struggle to make ends meet at the moment, most have little hope of things improving.

Asked how they felt about the economy, 60% were pessimistic and felt the future looked bleak.

And 43% feared family finances would never get back to how they were before the credit crunch.

But as mums work hard to keep their families going, they do get some satisfaction from a job well done, with 88% getting a feeling of pride when they save money.

Asda director Judith McKenna said: “Mums are making real behaviour changes that point to a permanent shift in how mums spend – families are running just to stand still.”